Working Capital Management and Solvency of the Industries in Bangladesh

Abstract

The goal of a firm is to maximize its wealth maximization and it is important for the financial manager to take the right decision to utilize its investment efficiently and effectively. One of the crucial decisions is the working capital management which is made by the financial manager. The challenge is that every firm should maintain the optimum working capital management by which the shareholders’ wealth can be maximized. This study focused on the working capital management of different types of industries in Bangladesh and covers the difference between the solvencies of different industries. Moreover, it also represents the profitability of different industries in compare with the working capital management. It is important to manage the working capital management; otherwise, the firm may suffer in insolvency which may result in bankruptcy.

Keywords: Working Capital Management, Liquidity, Solvency, Profitability, Cash Conversion Cycle.